The latest US GDP report shows a significant decline in US consumption.

US Q1 GDP: 2.1%

Let's break down the GDP to see what had changed from the previous quarter.

GDP growth = G + I + C + NE

NE=Export - Import

Q1 GDP (1st estimate) = 0.73 + 1.48 + 1.08 + (-1.3) = 1.99 (2)

Q1 GDP (2nd estimate) = 0.73 + 1.19 + 0.95 + (-1.25) = 1.62 (1.6)

Q1 GDP (Final) = 0.74 + 1.35 + 0.37+ (-0.37) = 2.09 (2.1)

We can see that there are significant declines in consumption (C) and import that contribute to the improvement in the US GDP.  Consequently, the significant fall (-61%) in (C) causes inventories to rise and also increase the investment (I) subcomponent.

However, this is a bad omen because consumption comprises 2/3 of the US GDP.  

What is the proximate cause of this fall?  The significant cutback in the US consumption is likely due to the rising US inflation.

From the charts below, we can see that the US core inflation has spiked to 4.4% on a quarterly basis.